What will shape the US Economy in 2007

According to me, here are the variables, no surprises:

The Negatives

• Housing - is tanking, and if it does recession will settle in. Net Effect - slow down.
• Employment and Curb on Immigration - Is going to have an upward pressure on inflation and rate and liquidity. Net Effect - slow down
• War on Terror - Is going to keep feds worried and so the businesses. Business folks on wall street look too much at Fed, rather than globally. Net Effect - growth slowing down

The Positives

• We are entering 2007 on a bullish note - so some corrections are likely in the first quarter but the sentiment will continue.